Revenue

6 Months Ended

Jun. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Revenue by Category

We recognized revenue, disaggregated by business segment, geographical region, and timing of transfer of goods or services, as follows:

			Three Months Ended						Six Months Ended
(in thousands)			Jun 30, 2020		Jun 30, 2019		Mar 31, 2020		Jun 30, 2020		Jun 30, 2019
Business Segment:
	Energy Services and Products
		Remotely Operated Vehicles	$	98,778	$	120,363	$	111,780	$	210,558	$	220,709
		Subsea Products	130,655		138,910		194,838		325,493		267,754
		Subsea Projects	56,326		75,104		61,455		117,781		164,832
		Asset Integrity	48,077		61,156		59,132		107,209		121,845
	Total Energy Services and Products		333,836		395,533		427,205		761,041		775,140
	Advanced Technologies		93,380		100,248		109,463		202,843		214,527
		Total	$	427,216	$	495,781	$	536,668	$	963,884	$	989,667

			Three Months Ended						Six Months Ended
(in thousands)			Jun 30, 2020		Jun 30, 2019		Mar 31, 2020		Jun 30, 2020		Jun 30, 2019
Geographic Operating Areas:
	Foreign:
		Africa	$	51,649	$	61,390	$	63,417	$	115,066	$	148,496
		United Kingdom	62,426		65,058		60,787		123,213		118,356
		Norway	45,423		60,252		52,184		97,607		102,718
		Asia and Australia	37,122		43,123		45,680		82,802		84,549
		Brazil	19,117		23,658		26,489		45,606		41,421
		Other	22,625		28,334		24,659		47,284		49,556
	Total Foreign		238,362		281,815		273,216		511,578		545,096
	United States		188,854		213,966		263,452		452,306		444,571
Total			$	427,216	$	495,781	$	536,668	$	963,884	$	989,667

Timing of Transfer of Goods or Services:
	Revenue recognized over time	$	396,773	$	455,937	$	498,307	$	895,080	$	917,182
	Revenue recognized at a point in time	30,443		39,844		38,361		68,804		72,485
Total		$	427,216	$	495,781	$	536,668	$	963,884	$	989,667

Contract Balances

Our contracts with milestone payments have, in the aggregate, a significant impact on the contract asset and the contract liability balances. Milestones are contractually agreed with customers and relate to significant events across the contract lives. Some milestones are achieved before revenue is recognized, resulting in a contract liability, while other milestones are achieved after revenue is recognized, resulting in a contract asset.

The following table provides information about contract assets and contract liabilities from contracts with customers:

(in thousands)	Jun 30, 2020		Dec 31, 2019
Contract assets	$	223,405	$	221,288
Contract liabilities	51,763		117,342

Our payment terms consist of those services billed regularly as provided and those products delivered at a point in time, which are invoiced after the performance obligation is satisfied. Our product and service contracts with milestone payments due at agreed progress points during the contract are invoiced when those milestones are reached, which may differ from the timing of revenue recognition.

During the six months ended June 30, 2020, contract assets increased by $2.1 million from the balance at December 31, 2019, due to revenue earned of $868 million, which exceeded the timing of billings of approximately $866 million. Contract liabilities decreased $66 million from the balance at December 31, 2019, due to revenue recognition of $81 million in excess of deferrals of milestone payments that totaled $15 million. There were no cancellations, impairments or other significant impacts in the period that relate to other categories of explanation.

Performance Obligations

As of June 30, 2020, the aggregate amount of the transaction price allocated to remaining performance obligations was $314 million. In arriving at this value, we have used two practical expedients available to us and are not disclosing amounts in relation to performance obligations: (1) that are part of contracts with an original expected duration of one year or less; or (2) on contracts where we recognize revenue in line with the billing. Of this amount, we expect to recognize revenue of $251 million over the next 12 months, and we expect to recognize substantially all of the remaining balance of $63 million within the next 24 months.

Due to the nature of our service contracts in our Remotely Operated Vehicle, Subsea Projects, Asset Integrity and Advanced Technologies segments, the majority of our contracts either have initial contract terms of one year or less or have customer option cancellation clauses that lead us to consider the original expected duration of one year or less.

In our Subsea Products and Advanced Technologies segments, we have long-term contracts that extend beyond one year, and these make up the majority of the performance obligations balance reported as of June 30, 2020. We also have shorter-term product contracts with an expected original duration of one year or less that have been excluded.

Where appropriate, we have made estimates within the transaction price of elements of variable consideration within the contracts and constrained those amounts to a level where we consider it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. The amount of revenue recognized in the three months ended June 30, 2020 that was associated with performance obligations completed or partially completed in prior periods was not significant.

As of June 30, 2020, there were no significant outstanding liability balances for refunds or returns due to the nature of our contracts and the services and products we provide. Our warranties are limited to assurance warranties that are of a standard length and are not considered to be material rights. The majority of our contracts consist of a single performance obligation. When there are multiple obligations, we look for observable evidence of stand-alone selling prices on which to base the allocation. This involves judgment as to the appropriateness of the observable evidence relating to the facts and circumstances of the contract. If we do not have observable evidence, we estimate stand-alone selling prices by taking a cost-plus-margin approach, using typical margins from the type of product or service, customer and regional geography involved.

Costs to Obtain or Fulfill a Contract

In line with the available practical expedient, we capitalize costs to obtain a contract when those amounts are significant and the contract is expected at inception to exceed one year in duration. Otherwise, the costs are expensed in the period when incurred. Costs to obtain a contract primarily consist of bid and proposal costs, which are incremental to our fixed costs. There were no balances or amortization of costs to obtain a contract in the current reporting periods.

Costs to fulfill a contract primarily consist of certain mobilization costs incurred to provide services or products to our customers. These costs are deferred and amortized over the period of contract performance. The closing balance of costs to fulfill a contract was $12 million and $15 million as of June 30, 2020 and December 31, 2019, respectively. For the three- and six-month periods ended June 30, 2020, we recorded amortization expense of $1.9 million and $3.8 million, respectively. For the three- and six-month periods ended June 30, 2019, we recorded amortization expense of $1.7 million and $4.3 million, respectively. No impairment costs were recognized.